MGIC Investment (MTG) Rises as Home Prices Make Notable Gains (RDN)
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MGIC Investment (NYSE: MTG) shares are strong on the session following new housing data issued earlier.
The S&P/Case-Shiller 20-city index rose a better-than-expected 4.3 percent for the three-months ended in October. The Street was looking for a 3.9 percent rise while prices rose 3 percent in September.
Rising home prices are a boon for companies like MGIC and peer Radian Group (NYSE: RDN), which are private mortgage insurers. As prices rise, the gap between what a borrower owes versus the recovery value of the home narrows.
Shares of MGIC are up 9.6 percent today while Radian is up about 4.5 percent.
The S&P/Case-Shiller 20-city index rose a better-than-expected 4.3 percent for the three-months ended in October. The Street was looking for a 3.9 percent rise while prices rose 3 percent in September.
Rising home prices are a boon for companies like MGIC and peer Radian Group (NYSE: RDN), which are private mortgage insurers. As prices rise, the gap between what a borrower owes versus the recovery value of the home narrows.
Shares of MGIC are up 9.6 percent today while Radian is up about 4.5 percent.
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